Will 2024 usher in a more favorable buyers market? Redfin seems to think so as the company has released its new year predictions focused on small price declines but more listings. Prices are ending 2023 up around 3 percent annually, but in the new year, Redfin expects prices will fall 1 percent year-over-year in the second and third quarters, when the home-selling season is in full swing.
Why is Redfin putting expectations on lower prices? Supply will rise more than demand.The company notes that it has recently seen a double-digit annual increase in homeowners contacting Redfin for help selling their home, a trend that is expected to continue through 2024.
In the first quarter of the new year, Redfin analysts expect existing home sales will be on pace for 4.1 million total in 2024, up from an annual pace of 3.85 million in the fourth quarter of 2023. Overall, the company expects 4.3 million sales in 2024, up 5 percent year-over-year. A crucial difference between 2024 and 2023 will be sales gaining momentum throughout the year instead of losing momentum.
As for the sky-high mortgage rates, Redfin anticipates rates will fall to about 6.6 percent by the end of 2024.